October 27, 2022 (MLN): The net profit of Kohat Cement (PSX: KOHC) has soared to Rs1.8 billion [EPS: Rs8.89], up by 28% YoY in 1QFY23, compared to Rs1.4bn [EPS: Rs1.40] earned in the same period last year (SPLY).
The jump in the bottom line was due to higher retention prices in the local market and a remarkable increase in other income.
During the period under review, the company had posted a revenue of Rs8.85bn against Rs6.80bn in SPLY, up by 30% YoY, primarily on the back of a significant jump in retention prices and dispatches.
The cost of sales of the company increased to Rs6.08bn due to rising coal and freight charges. Resultantly, the gross margin has squeezed to 31.3% as compared to 33.22% in SPLY.
On the expense side, the distribution cost of the company arrived at Rs32.6mn, increasing by 41% YoY. This is primarily attributable to increased freight charges associated with higher export sales. Likewise, the admin expense of the company during the period jumped by 19% YoY.
Moreover, a 4.66x YoY increase in other income on the back of an increase in short-term investments further reinforced the bottom line.
The effective tax rate during the period stood at 32.65% in 1QFY23, compared to 29.85% in SPLY.
